Former Glitnir Head Arrested In Iceland

Law360, New York (December 1, 2011, 7:23 PM EST) -- Former Glitnir Bank HF CEO Larus Welding is reportedly in custody in Iceland after being arrested Wednesday as part of authorities' probe into possible embezzlement in connection with the bank's 2008 collapse.

Welding was one of three people arrested Wednesday as a result of the investigation, according to local media reports. Two dozen others were questioned by police, who are looking into trades in Glitnir shares by Icelandic investment firm FL Group prior to September 2008, when the Iceland government assumed a 75 percent stake in...